Assemblin Caverion Group (ACG) Q3 2024 earnings summary

Executive summary

• Profitability improved significantly in Q3 2024, driven by merger synergies and operational efficiencies, despite a 3.5% decline in net sales year-over-year.

• Adjusted EBITA rose 21.8% to SEK 691 million, with margin up to 7.1% from 5.6% in Q3 2023.

• Order intake increased to SEK 9,278 million, and the order backlog remained stable at SEK 31,508 million.

• Maintained stable net sales and order intake despite challenging market conditions.

• Restructuring and integration costs led to high items affecting comparability, impacting reported EBITA and net profit.

Financial highlights

• Q3 2024 net sales: SEK 9,740 million, down 3.5% year-over-year.

• Order intake: SEK 9,278 million, up 5.9% year-over-year.

• Adjusted EBITA Q3: SEK 691 million (up 21.8%); margin 7.1%.

• Free cash flow (LTM): SEK 3,218 million; cash conversion (LTM): 117%.

• Order backlog: SEK 31,508 million, up 0.1% year-over-year.

Outlook and guidance

• Market conditions expected to remain challenging for the rest of 2024, with early signs of recovery in some regions.

• Continued focus on leveraging operational synergies and supporting customers with a broader offering.

• Focus remains on profitability over volume, selective tendering, and leveraging merger synergies for sustainable growth.

• Well positioned for profitable and sustainable growth.